In the alphabet soup of retirement plans, one set of letters a trustee should know is QDIA.  The Qualified Default Investment Account is the investment designated by the plan for those participants who do not select an option for their deferrals or deposits.  These accounts can be Asset Allocation Accounts, Target Date Funds, or Lifestyle Funds depending on your plan document and the menu of your service provider.

The Department of Labor has stated that the trustee of a plan is responsible to:

  1. Monitor the literature provided to the participants for any communication that may be unbiased;
  2. Monitor the asset allocation model for performance and expenses;
  3. Monitor the service providers for any conflicts of interest or revenue sharing associated with the QDIA.

Many Trustees are barely aware of QDIA’s much less their responsibility to keep an eye on them.

Fred Reisch, one of the nation’s leading ERISA attorneys address the issue in a recent blog.  You can read it here.

To learn about how the 401 (k) Shield can help you stay focused on running your business, not your 401 (k) responsibilities, you can learn more here, or you can contact me.   I would welcome the opportunity to brief you on our services.

For more  about the 401 (k) Shield click here.

David M. Wheat, ChFC. AIF
Axiom Advisors, LLC.
[email protected]
800.769.1287 ext. 103